The Make-Up Model Introduces The "Wealth Empire" Created By Zara.
Just yesterday (February 15th), ZARA, a clothing giant, boarded micro-blog's first search for a picture.
The cause of the incident is the ZARA's announcement of micro-blog's new make-up products, including the freckled photos of Li Jingwen, the Chinese model, which caused controversy.
Some netizens commented that this is deliberately vilified Asian women, and some netizens said it was very natural and there was a heated discussion on the Internet.
After that, ZARA responded that it did not deliberately vilify Asian women, and that publicity for the global market was not aimed at the Chinese market. The model was chosen by the Spanish headquarters, with different aesthetic standards and no modification of the photos.
With the ferment of public opinion, soon the ZARA veteran clothing dealer was also pushed to the public.
The last time it was in the public eye, it was news that the products of other brands were plagiarized.
The public's understanding of the ZARA brand is also largely related to its "copying myth" in the industry. For ZARA, "copy" is the magic weapon of all success. "We do not lead the trend, just want to be a fashion Porter"!
How did ZARA win the market with a crazy "plagiarism"?
ZARA, founded in Spain in 1975, is ranked third in the world and ranked number one in Spain.
Today, it has opened more than more than 2000 stores in 87 countries. In recent years, it has dominated the fast fashion, far away from competitors such as UNIQLO, H&M and Topshop, also known as "the king of fast fashion".
When you walk into ZARA's shop, it's like walking into the mini four Fashion Week show. It brings together the latest brand of the major brands, and some even sell them synchronously with the big brands.
According to the observation, the clothes of ZARA shop will be renewed every two or three weeks with rich styles.
Behind this is the ZARA's savage business speed.
According to the data, ZARA can design a garment every 20 minutes, and design more than 25000 new designs every year. The speed of "7 days production, 14 days cabinets and 30 days' cabinets" is very impressive.
To do so fast, "plagiarism" has become a natural choice.
Over the past 40 years, ZARA has persisted in plagiarism for decades.
ZARA has more than 600 full-time designers, and the whole designer team is large and young, with an average age of 25 years old.
These young people travel around the world all the year round. Whether they are LV, CHANEL or Nike ADI, all the excellent clothing brands will rush to the top as soon as they introduce new models, and copy them at the fastest speed, put them into mass production and sell them at civilian prices, and catch whoever will copy.
Which new product to copy is determined by data.
Designers learn from everyday data feedback which sells well and which are unsalable, and then design the following new models.
It takes only 4 weeks for new products to be seen by ZARA, from design to production to sales outlets, while the average fashion brand takes 9 weeks.
ZARA did not choose to work hard in designing innovation, but through many channels to imitate the latest styles of international top brands.
These fashionable brands can become the benchmark of the industry to lead the world trend. Their path is through many explorations and attempts, and it is feasible to imitate the excellent peers, so that the success rate of ZARA mode is greatly increased.
What makes the big guys even more crazy is that ZARA rarely advertise, but they spend a lot of money on LV, Chanel and other luxury brands.
"Fast imitation + parity sales + Fast Reading iteration" is the brand gene born in the birth of ZARA.
Compared with other fast fashion brands, ZARA can control the whole process better and faster (from market research to design, plate making, sample making, mass production, pportation, retail).
Not only that, ZARA has not even let China's products pass.
It once appeared in a vertical striped shopping bag, which is very similar to the product launched by fashion brand Balenciaga, and this design inspiration comes from China's Spring Festival special offer.
Although all the fast moving brands are striving to pfer fashion to consumers at the lowest cost and fastest time, ZARA can be described as a dust devil on the way of plagiarism, and other fast fashion brands can not be surpassed.
It is ZARA who created the commercial myth of "fast and unbroken", feeding the masses of consumers with "big design and low price".
In fact, in the fashion world, the plagiarism has prevailed for a long time, and the fast fashion brand Forever21 and luxury brand Gucci have been placed in court.
But ZARA can always take the lead in the fast fashion industry. It is definitely not only because of plagiarism, but the diversification of brand strategy is the motive force to push it forward.
Implementation of "starvation" therapy in small batch production
Compared with other clothing retailers, ZARA has a very small number of clothing production, which artificially created a scarcity.
The more it is not easy to get, the more it can stimulate people's desire to buy.
ZARA implements the strategy of always out of stock. For the same style of clothing, there are only a few stocks in the retail store.
This scarcity strategy greatly promotes the purchase decision and purchase speed of customers.
Many styles are new, rejecting "aesthetic fatigue".
ZARA does not pursue more products in each style, but pays more attention to the diversity of styles. Compared with competitors, ZARA can provide consumers with more choices in fashion.
ZARA stores offer two times a week, repeat orders from the off sale styles, and stores will be updated every 3-4 days.
Frequent updates and more choices create the unique appeal of ZARA, which greatly increases customer preferences and loyalty to brands.
A fortune Empire worth 70 billion dollars.
Of course, it is possible to make ZARA unscrupulous to copy big names without fear of the ultimate cause of tort compensation or its amazing sales performance.
In fiscal year 2015 (as of January 31, 2016), ZARA's sales reached 20 billion 900 million euros, which is also the parent company of ZARA, which has earned more than 20 billion euros for the first time in Inidtex group.
It can be said that ZARA is the backbone of the Inidtex group.
In October 2015, Inditex entered the 100 billion euro club, second only to the world's largest luxury group LVMH.
In May 2018, Forbes released the world's most valuable brand list in 2018, and ZARA ranked forty-sixth.
In October 23, 2015, the net assets of the founder of ZARA (Inidtex group) Oman Theo Ortega rose to the top of the world's richest place for the first time over Bill Gates because of the rise in Inditex stock.
This is a meteor passing across the sky.
Forbes said, "this is also the first counterattack against traditional clothing industry in the long PK road with technology giants".
In September 2016, stimulated by Inditex's share price by 2.51%, Ortega surpassed Bill Gates ($78 billion 400 million) for $79 billion 500 million and became the world's richest man.
At the end of 8 2017, according to the Forbes real time rich list, Ortega, who was 81 years old, twice exceeded Microsoft founder Bill Gate, becoming the richest person in the world with an asset value of 85 billion dollars.
In the early September 2017, history repeats itself.
This is Ortega's fifth top throne.
Ortega repeatedly asked the world's richest man, though a flash in the pan, but also let the world see Ortega's wealth strength.
By the 2018 billionaires list, Ortega's wealth had shrunk to $70 billion, ranking only sixth.
Behind this is the crisis of Ortega's commercial empire.
In the first three quarters of 2018, the income of ZARA parent Inditex group increased from 3% to 18 billion 400 million euros, compared with 10% in 2017.
As the main source of revenue for Inditex group, the most direct reason for the "empire" crisis is the sharp slowdown in the growth of ZARA's performance.
In the first half of 2018, ZARA sales increased by 2.2% over the same period last year, compared with 11% in the same period last year.
At the same time, the stormy closed shop tide also hit ZARA, its first store in New York closed in 9 2018.
In China, ZARA flagship store in the main street of Chengdu is also officially closed.
This store, which opened in late 2011, is the first store opened by ZARA in China. It is also the largest flagship store in China.
According to their own view, ZARA is now suffering from the enormous competition pressure from other Internet retailers, and is in the throes of pition.
Crisis and vitality of clothing giants
The slow down of performance growth sounded the alarm, and ZARA had to take measures to find new growth points.
The first thing they did was to break the tradition of "never invites spokesmen". In September last year, Wu Lei and Dongyu Zhou were launched as the brand ambassadors of the Greater China region.
You know, the eight brands of its parent company Inditex, including ZARA, Oysho and Massimo Dutti, have hardly ever been spokesmen in the Chinese market.
At the same time, the old business also began to bet on new retail.
Also in September of last year, ZARA China's first new retail concept store was located in Times Square, Shanghai.
This store is designed solely for the business of electronic commerce. It is presented in the form of flash store. Consumers need to download APP to complete fitting and shopping, and can not get goods at the scene. All orders will be delivered through the electricity supplier channel.
In order to further the consumer group, ZARA also played the AR technology. Consumers choose products through mobile phones, model them on trial, and then project the AR shopping windows through shop sensors, which is intended to attract more young customers to shop.
The source of the war is also due to the intention of ZARA to enter the make-up business.
Since last year ZARA released the first lipstick series, it is stepping up the strategic adjustment of the cosmetic industry step by step.
In order to make ZARA run again, the brand side used various kinds of killer weapons.
It's just that it can work, and we can't draw a conclusion now. It depends on whether consumers are willing to pay for it.
The ZARA of that year can be regarded as a subversive of the garment industry. It has opened up a new path in the top clothing and popular brands, and has completely broken the operation mode of traditional clothing brand practices, so that it can quickly grow into the top brand in fast fashion.
More than 40 years later, ZARA is no longer an overwhelming young brand. Now, when it meets new technologies and consumers, what kind of spark will collide?
Source: Investor: Entrepreneur
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